A Hull furniture manufacturer is poised for growth after securing a string of prestigious contracts throughout the UK and Europe.

LabFX designs and manufactures laboratory and education furniture for clients in sectors ranging from R&D and healthcare to education, food and IT.

Established in August last year, the firm is already making its mark with a series of contract wins, including a contract with Kier Group worth more £1m, to fit out laboratories at a leading UK university.

Managing director Ian Macfarlane said: “One of the most exciting things for us has been to have a firm like Kier recognise our talent and expertise, and have the confidence to award us a contract as part of Project Capella.

“In terms of the business, we are already slightly ahead of expectations, but I predict this contract is going to take us much further ahead.

“It is a major project, and is worth more than £1m so is a significant win for us.

“To have such fantastic endorsement from a major UK contractor has been great for a business that is essentially less than a year old.”

SPECIAL FX: LabFX business owner Ian Macfarlane and HSBC business manager Simon Worthington with new apprentice Charlie Mulligan

Although LabFX is a relatively new business on the block, Mr Macfarlane has more than 30 years’ experience in the industry.

He said: “Although LabFX is a start-up business, I have been working in the laboratory and furniture industry for 31 years, so have a lot of experience and contacts.

“In this sense, we are not starting out from scratch but have the expertise and knowledge of a more established business.

“When I started the company up last year I initially planned to run it as a consultancy business.

“However, as is often the case, my wife said ‘why don’t you set up a manufacturing facility as well?’.

“I figured it would be a lot more hard work – I was 53 at the time and had been looking ahead to retirement – but the opportunity seemed too good to miss.”

Mr Macfarlane worked with Finnies Accountants in Beverley to create “a very comprehensive” five and then ten year business plan, which he presented to HSBC.

The Hull manufacturer secured a six-figure finance package as part of the bank’s SME Fund.

The lending fund is designed to support small and medium-sized enterprises (SMEs) in Yorkshire, with £850m made available last year to enable local companies to realise their growth ambitions.

This year, HSBC has upped its package of support by making £1bn available to Yorkshire firms.

LabFX used the cash to cover start-up costs and facilitate the establishment of a state-of-the-art manufacturing facility in Caroline Street, which is housed in the former White and Farrell building.

Though Mr Macfarlane admits Kier took what some might perceive as a “leap of faith” with LabFX, Phil Lavelle, senior project manager from Kier, said he was “entirely comfortable” placing the Project Capella order with the Hull-based start-up.

“Customers across education, healthcare, research and development have responded well to our offer, and our order book continues to grow,” said Mr Macfarlane.

“We’re extremely excited about the future, and dedicated to developing our business.”

Mike Hemmingway, regional director at HSBC, said: “We have so many ambitious businesses in our region who are keen to grow locally, nationally and internationally.“This fund is all about helping those businesses make investments that will enable them to achieve their goals while stimulating our local economy and creating jobs.”

A major focus of this year’s fund is to encourage small businesses – both start-ups and more established companies – to explore export opportunities.

More than a fifth (21 per cent) of SMEs currently export, however a report by the Federation of Small Businesses suggests there is potential to double this figure with the right support.

Amanda Murphy, HSBC’s head of commercial banking, said: “SMEs are the lifeblood of the economy, and for many there is an opportunity and appetite to grow their business through exporting.”